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CardioNet (BEAT) Acquires ECG Scanning in $6.4M Deal

February 10, 2012 9:05 AM EST
BEAT Hot Sheet
Overall Analyst Rating:
    NEUTRAL (= Flat)

Revenue Growth %: -20.6%
On February 10, 2012, CardioNet, Inc., (Nasdaq: BEAT), entered into and closed on a definitive Stock Purchase Agreement with ECG Scanning and Medical Services, Inc., an Ohio corporation and ECG’s sole shareholders, John Nasuti and Randy Nasuti.

Upon the closing of the transaction, the Company acquired all of the issued and outstanding capital stock of ECG from the Sellers, and ECG became a wholly-owned subsidiary of the Company. ECG is a provider of cardiac monitoring services in the United States.

Pursuant to the terms and conditions of the Stock Purchase Agreement, the Company (i) paid $5.8 million to the Sellers in cashupon the Closing and (ii) agreed to pay up to an additional $0.6 million to the Sellers in cash if ECG’s revenue meets certain agreed upon performance targets during the 12-month period following the Closing. The Aggregate Consideration is subject to a post-Closing increase or decrease based on the amount, if any, by which ECG’s net working capital at Closing exceeded or fell short of an agreed upon target. The purchase price paid at Closing was funded with the Company’s cash on hand.


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